Uraan to trillion-dollar economy

It is indeed unfortunate that the policymakers remain totally disconnected with the prevalent ground realities in the country. It has been reported by several credible sources that the un-documented economy of Pakistan already exceeds $ 1 trillion mark set by the economic honchos to be achieved by the year 2035.

It is the new long-term vision of the Planning Commission of Pakistan. Documentation remains to be the major challenge, the wheels are already turning and producing.

Continuity of policy together with consensus are certainly required but without facilitation of the regulators it will remain an uphill task.

Businesses shy away from the system as it is deadly. The thirty-four blood thirsty inspectors have the powers to shut down any productive enterprise. Perhaps the Islamic Republic of Pakistan has one of the fastest growing black economies of the world due to the entrepreneurial spirit of its people who have managed to survive against all odds by operating under cover and outside the reach of the leaches of the system left behind by the colonists. This ‘Uraan’ is destined for ‘Varaan’.

The fault is not in our stars but in our system. Facilitation is the main purpose of documentation; in quality management it ensures customer satisfaction. Exploitation and manipulation through colonial era Acts can easily impede progress. In a democratic dispensation the voters are treated with respect. SOPs (Standard Operating Procedures) are formulated to assist them in their chores and control executive abuse. Tax collection is carried out to fund the state apparatus not to haunt the masses.

Honesty and integrity which was once considered a virtue is now looked down upon. Those who are willing to pay their national dues are considered enemies of the collectors and punished.

The standard mantra being pay us upfront, the treasury collection comes later. Most inspectors claim that they are only the front men for collection of illegal levies or ‘Bhata’ as it is called while the distribution list goes all the way to the top. Those who try to call their foul are hounded by notices and one-sided hearings.

Thank the stars that the undoubted economy continues to grow in double digits while documented side has been in the negative. Over the years the gap has widened in the land of the pure as ’ Mafias ’ have taken over.

Cost of doing fair business has spiralled. Coming from a business family, I have personally witnessed and experienced the heartaches of upright businessmen like my late father Nazir Ahmed Malik, a Tehreek-e-Pakistan Gold Medallist.

Today no one is willing to invest in the documented sector of economy, which is infested with vultures of all kinds. Unless major reforms are carried to produce customer friendly documents, the economy is going nowhere. I remember an ordeal with the tax department. My late mother was a ‘Wealth Tax’ assessee.

In the decade of the nineties, we received an urgent hearing notice to appear before the Commissioner. I promptly appeared in the office of His Majesty. He was surprised to see the well documented file prepared by my old man as the departmental record had been lost. The hearing was called to rebuild their lost file. A verbal request was made for photocopies of my papers, which was turned down as I insisted on a written communication.

Notices of hearing kept coming but every time there was refusal from my side. It was a stalemate. Finally, I sought intervention of my friend who was Collector Income Tax at that time. A compromise was reached. I was asked to provide copies on the promise that there would be no future notices.

In private I was told that under the rules no power on earth can stop the department from sending notices as they were omnipotent rulers accountable to no one not even the Queen of England after the so-called freedom on August 14, 1947. Thankfully, my mother could die in peace without having to appear again before the ’ Lordships ’ imposed on us.

Currently, I have been on a mission to start large-scale gasification of coal to replace the expensive LNG (Liquefied Natural Gas) being imported from Qatar. Some large business groups are willing to invest provided they remain under cover; otherwise, they are afraid of the notices that will follow.

One of them went to the extent of saying, “we are treated as IMF by these inspectors who put all kinds of demands upon us. While the Government of Pakistan is always looking up to the Washington IMF, the local businesses are being hounded by the state apparatus to round-up the local wealth.

Documentation means squeeze all the way both global and local. That is why businessmen shy away from such documents that were designed to exploit/control does not serve in the first place.

The Islamic Republic of Pakistan also leads the pack of countries with the highest rate of indirect taxes and the lowest direct tax collection. Right from day one less that 1 percent people pay Income Tax which is the only direct taxation in the country. Most transactions are carried out in cash to avoid payment trails. In India an App was created to document flow of money which has produced results.

Today their economy is on solid foundations. On his recent visit to Karachi the commercial capital of Pakistan, the Prime Minister (PM) admitted that taxes remain high in the country which have proven to be counter-productive.

He did promise major tax reforms. The un-documented, black economy will continue to grow till the documents are sorted out and cleansed to serve/facilitate not usurp/strangle those who venture out in the open to play their role in increasing they’re and the nation’s wealth. Surrounded by vultures, no economic order can flourish, the message is loud and clear.

Copyright Business Recorder, 2025